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Role Of Law In Business And Society Essay

¶ … Role of Law in Business and Society The functions and roles of law when it comes to business and society are not always understood by the lay person, but those functions are extremely important. The functions related to law and to the application of law are the backbone of how society and economies actually work, and will be reviewed and critiqued in this paper.

The Functions and Role of Law in Business

The law as it applies to business refers to a "…code of conduct that defines the behavioral boundaries for business activity," according to a generalization found in the book, The Legal Environment of Business (Meiners, et al., 2006). Though "law" is a term that is seen as abstract in some contexts -- and though there is no precise definition of law that carries over to many cultures -- the noted former Supreme Court Justice Oliver Wendell Homes put it this way: "Law is a statement of the circumstances, in which the public force is brought to bear…through the courts" (Meiners). The Justinian Code (adopted in Roman law in 533 A.D) asserted that the commandments of law include: "live honorably; harm nobody; give everyone his due" (Meiners).

Meanwhile, Professor Marianne Jennings explains that because businesses are operating in a global market, companies must understand the role of law in the countries where they operate. For example, U.S. firms doing business (with manufacturing plants) in South America must be aware of laws in those South American countries. In the same vein, Japanese firms building cars in the United States are obligated to understand the role of law in businesses operating in America....

International laws that effect businesses include: a) international trade customs and restrictions; and b) international agreements that are part of the Statute of the International Court of Justice (a United Nations court that resolves disputes) (Jennings, 2010).
Laws must by nature be "pervasive and cover all necessary areas," Jennings explains, but also laws cannot "…infringe on freedoms or become so complex" that enforcement becomes problematic (Jennings, 8). The author also believes that for businesses, the law is the "great compromiser" because while not everyone will agree on what rules should apply to businesses, law serves "…to mesh different views into one united view" so most parties in a dispute are at least "partially satisfied," said Jennings, a professor of legal and ethical studies (7).

The Role of Law in Society

Author Larry Barnett asserts that the "…regulation by law is essential" because it assures that certain behaviors people expect others to follow will indeed occur (Barnett, 2011). Law in fact supports individuals' expectations that intergroup and interpersonal relationships will be possible, which boils down to what Barnett explains is "social life" (Barnett, 5). The author also points out that as society changes, the role of law changes as well. When there was emerging social pressure for a change in how divorce is approached through the law, no-fault divorce came into being.

Speaking of societal changes and adjustments in laws that result from those changes, noted criminologist Larry Siegel explains that recent technological advances like computers and the Internet…

Sources used in this document:
Works Cited

Barnett, Larry D. (2011). The Place of Law: The Role and Limits of Law in Society. Piscataway,

NJ: Transaction Publishers.

Jennings, Marianne, M. (2010). Business: Its Legal, Ethical, and Global Environment.

Independence, KY: Cengage Learning.
2013, from http://www.dol.gov.
from http://www1.eeoc.gov.
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